Thailand's military took its first steps toward revitalizing a battered economy and warned protesters they will not tolerate any further rallies against its coup after a series of clashes between soldiers and protesters across the country on Sunday.

The military met with economic leaders and said nearly a million farmers owed money under the previous government's failed rice-subsidy scheme would be paid within a month.

Soldiers and police discuss how to handle a growing crowd of anti-coup protestors in front of a McDonald's restaurant in Bangkok, May 25, 2014. (Steve Herman/VOA)

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Soldiers and police discuss how to handle a growing crowd of anti-coup protestors in front of a McDonald's restaurant in Bangkok, May 25, 2014. (Steve Herman/VOA)

Since seizing power last Thursday, the military has thrown out the constitution, censored the media and dismissed the upper house Senate, Thailand's last functioning legislature.

On Sunday, it said anyone accused of insulting the monarchy or violating its orders would face military court.

Power now lies in the hands of army chief Gen. Prayuth Chan-Ocha and his junta known as the National Council for Peace and Order, and their priorities appeared to be stamping out dissent and tending to the economy.

Discussions on economy

The military held meetings on Sunday with the leaders of state and private commercial organizations, senior officials of the commerce, finance ministries and business leaders. Officials from the energy ministry, oil trade and transport companies were also summoned.

"The economy needs to recover. If there is something wrong, we have to find quick solutions," Thawatchai Yongkittikul, secretary general of the Thai Bankers' Association, told reporters, citing coup leader Prayuth.

"The burning issues that need to be solved are the rice-buying scheme and the budget plan for the 2015 fiscal year."

A rice-subsidy scheme organized by former Prime Minister Yingluck Shinawatra's government failed, leaving huge stockpiles of the grain and farmers are owed more than $2.5 billion. A military spokesman said it was hoped farmers would begin to get paid in one or two days and every farmer would be paid in a month.

In the first quarter of the year, the economy shrank 2.1 percent. Thais are not spending, and consumer sentiment fell to a 12-year low in the months before the coup, Reuters reported.

A military official also told 18 newspaper bosses that King Bhumibol Adulyadej, 86, would on Monday endorse Prayuth as leader of the ruling military council, a significant formality in a country where the monarchy is the most important institution.

On Saturday, the army said the king had acknowledged the takeover.

An army spokesman warned against protests and told the media to be careful in its reporting, too.

"For those who use social media to provoke, please stop because it's not good for anyone," deputy army spokesman Winthai Suvaree said in a televised statement.

Protests continue despite ban

Army officials warned against further demonstrations saying protesters would be arrested, jailed and tried in military court.

Soldiers spread out across Bangkok on Sunday, including some of the city's busiest shopping areas, sparking scuffles and anger among hundreds of demonstrators.

Crowd cheers in Bangkok as an army loudspeaker truck leaves, May 25, 2014. Moments later so did all the soldiers. (Steve Herman/VOA).

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Crowd cheers in Bangkok as an army loudspeaker truck leaves, May 25, 2014. Moments later so did all the soldiers. (Steve Herman/VOA).

In Bangkok, hundreds of soldiers, most with riot shields, lined up to contain a crowd and there was some shouting and pushing and at least two people were detained.

By late afternoon about 1,000 people had gathered at the Victory Monument, a central city hub. A Reuters witness said trucks mounted with water cannon were on stand-by.

Prayuth's junta dissolved the kingdom's partly elected Senate on Saturday, one day after he named himself prime minister. The army chief said the moves are necessary to restore public order and push through political reforms.

The ruling military also announced Saturday it will continue to detain Yingluck and other ousted government officials for up to a week.

The coup has drawn international criticism. The U.S. Defense Department announced Saturday it is canceling ongoing U.S. military exercises with Thailand, as well as planned visits by U.S. and Thai military officials.

Spokesman Rear Admiral John Kirby said U.S. law and "democratic principles" require the U.S. to reconsider its military assistance and engagements.

US reaction

The U.S. had already suspended $3.5 million in military aid to Thailand as a result of the coup.

The U.S. State Department also warned U.S. citizens against non-essential travel to the country.

The Pentagon spokesman Saturday called on the Thai army to end its coup and "restore to the people of Thailand both the principles and the process of democratic rule, including a clear path forward to elections."

Thailand has been wracked by six months of political disputes and sometimes violent demonstrations. A court ordered Yingluck to step down earlier this month on charges of nepotism.

Her replacement, Niwattumrong Boonsongpaisan, who had taken over as prime minister on an acting basis, is also reportedly in military custody.

Once built, Yavuz Sultan Selim Bridge will span 2 kilometers with about 1.5 kilometers over water, and will be longest suspension bridge in world carrying rail system More

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Comments

by: tom from: Thailand

May 26, 2014 2:09 AM

It's so sad, formerly many people sacrificed themselves and died, trying to oust the tyranny, gaining the democracy and rights to vote, but today someone has destroyed democracy and gave their rights to tyranny.

by: Robert Larmer from: Australia

May 25, 2014 4:52 PM

Western media seem to forget that there is nearly 14million people live in Bangkok and the protests are miniscule as most people are just trying to take care of there family. Anti coup protesters talk much about the loss of democracy I need ask what about the loss of 28 lives most of which were unarmed anti government protesters who were exercising there democratic rite in the western media does democracy only count for the supporters of a government that ruled Thailand for their own financial benefit and that of their supporters while paying lip service

by: ThaiFarong from: CA, USA

May 25, 2014 4:13 PM

This is a lesson to observe when so called Democracy places the "good of the Party" over the "good of the People". Let's be real people, Democracy is used as a Tool to keep certain groups/people in Power. You think more Clinton / Bush Family candidates are really the best America can do ? The reason the General in Thailand took control is because: a) the politicians behave like children and an Adult / Authority is needed (for a reset) and b) Buddhism and the culture of Thailand is more important than something called Democracy. The General knew that it was better to act now then to have an open street war of Red vs Yellow. I am USA citizen but spend lots of time in Thailand. Are you aware "people of the West" that: without Capitalism, Democracy wouldn't last a week?. Let the Thai's figure out their own problems based on how their 4000 years of history, -- Don't need inept world leaders (Obama, Kerry ruling living off of printing money and loans) dictating to other countries how they should take care of their own affairs. Lastly, if you give the General a chance, versus protesting, maybe he will get something done, such as Pay the Rice Farmers what they were promised. (and if they need to find the money, take it directly from Thaksin's held funds). Lookup in history the last time there was someone in Thailand named Thaksin (a General in the 1700s) and you'll see what he tried to do and what happened to him. Democracy isn't holy when it is corrupt.

by: Serpio from: Bangkok, Thailand

May 25, 2014 2:36 PM

Good riddance of criminal fugitive Thaksin and his disgusting corruption &amp; nepotism. The rice scheme was a feeding frenzy, every disgusting crony binging on pork, robbing the taxpayer. Thaksin should ask for help from his Carlyle Group buddies, lol.

by: Bob from: USA

May 25, 2014 2:23 PM

Dear VOA Editors: This article should not have the "economic" section so high in the piece. By doing this, you are being a spokesperson for the military. You should concentrate your focus on the protests, restricted freedoms, and military aspects of this current news, not give voice to their supposedly "legitimate" policies. This was poorly edited with apparently little regard for the human turmoil in the country.

by: Stuart Bradley from: Thailand

May 25, 2014 11:34 AM

Its disgusting that this unelected military junta are now taking the high road and trying to show people that they are doing good for the farmers, the previous administration that they overthrew tried for months to pay the farmers but were blocked at every turn by the corrupt election commision and the corrupt courts. Everybody should put the sanctions on Thailand now and stop the rich dirty bangkok elites getting their way every time.

by: Alexander Myint Swan from: USA

May 25, 2014 8:35 AM

It seems that the king is controlling the country via the military. The true democracy is the only solution. The opposition party and the king have to listen the majority people of Thailand.

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